Retailers report dip in May sales

The BRC says May’s dip in sales is a more accurate reflection of customers’ attitude to spending

Retail sales dipped in May as a result of customers’ unwillingness to spend, say retailers.

The British Retail Consortium (BRC) said May sales values, taking out the effects of closures and new stores, fell 2.1% compared with 2010.

It said rises in previous months were a “distortion”, owing to a late Easter, an extra bank holiday and good weather.

The BRC said the May figures were a more realistic reflection of the “tough conditions” on the high street.

Shoppers bought fewer items across the board, with sales of clothing, footwear and big ticket items all falling.

The 2.1% fall refers to same-store sales – stripping out store expansions or closures.

The BRC said that overall sales were also lower, down by 0.3% on May last year.

Stephen Robertson, the organisation’s director general, said: “After two previous months distorted by the later Easter and extra bank holiday, this is a more realistic reflection of how tough conditions on the high street really are.

“Customers’ fundamental reluctance to spend is now clear to see. “

He said households’ disposable incomes were being squeezed by high inflation and low wage growth.

Uncertainty over the effects of government cuts was also weighing down consumer confidence about their future finances.

Retailers Mothercare, the entertainment group HMV, the sportswear firm JJB and the electrical retailers Comet and Dixons have all announced store closures in recent weeks.

Focus DIY and wine merchant Oddbins have fared worse, both going into administration.

The positive effect caused by April’s extra bank holiday for the royal wedding was enhanced by good weather, another factor that often boosts spending.

Mr Robertson said May’s figures were much more representative, as the three-month figure from March to May showed a like-for-like drop in retail sales of 0.4%.

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